Wamuchomba: Why I'm against tax exemption on poultry products

Githunguri MP Gathoni wa Muchomba. [David Njaaga, Standard]

The proposed 2024 Finance Bill continues to stir debate in the country as the implementation date draws near.

Key figures have not shied away from voicing their concerns over clauses they believe will significantly impact Kenyans.

Githunguri MP Gathoni Wamuchomba has been vocal in her criticism, labeling the Bill as punitive.

Speaking to Spice FM on Tuesday, June 4, Wamuchomba highlighted the Bill’s potential disadvantage to Kenyan poultry farmers.

As it stands, the legislation proposes tax-free importation of eggs from members of the East African community.

If implemented, this could undercut local producers due to lower production costs in neighboring countries.

“We have proposed that we are going to allow eggs coming from the East African community to come in without any duty, especially the excise duty,” Wamuchomba noted.

Expressing her concerns, Wamuchomba noted that Kenyan farmers would be unable to compete with cheaper eggs from Tanzania and Uganda, potentially crippling the domestic poultry industry.

“So this means anyone producing eggs in Tanzania and Uganda can freely bring their eggs here. Allowing that to happen, noting that the cost of production in the two countries is much lower compared to the cost of production in Kenya, means that eggs from Tanzania and Uganda will be sold at a cheaper price. What our farmers will do is just give in because they cannot compete with them, thus killing our poultry industry.

Further, she warned of a loophole that could see poultry products from outside the region entering Kenya untaxed, exploiting the East African trade agreement.

This, she says, could further saturate the market and challenge local producers.

At the moment, egg prices in the country range from Sh17 to Sh20, having risen due to increased costs for animal feed and production.

Wamuchomba fears that if regional competition intensifies and production costs remain high, Kenyan farmers may be forced out of the market, jeopardising an industry that sustains thousands of livelihoods.